Total electricity consumption in Puerto Rico saw a 6.6% increase between May and June, marking the fourth consecutive monthly increase this year. This surge in consumption has had a direct impact on the island’s economic activity, according to economist Adrián Alós. The industrial, residential, and commercial sectors reported the greatest increase in consumption patterns, which can be attributed to the high summer season and record heat indices.
The president of the Health Commission of the House of Representatives highlighted that the high energy costs are adversely affecting Puerto Rico’s healthcare system.
The rising temperatures have led to higher spending on electricity consumption, resulting in reduced economic activity and less money available for services and goods, explained Alós in an interview with THE SPOKESMAN. Industrial customers witnessed a 16.12% increase in consumption in June compared to the previous month and a 6.3% increase compared to the same period in 2022.
Commercial consumption experienced a growth of 1.2% in June compared to May and a mere 0.2% increase compared to June of the previous year. This increase directly impacts the businesses as they have to divert their expenditure from other areas such as services, purchase of materials, or hiring additional employees.
Despite the overall increase in consumption, the number of business clients decreased slightly by 0.5% from May to June. On the other hand, residential consumers recorded an 11.02% increase in energy consumption in June. However, when compared to June 2022, there was a 2.47% drop.
The president of the United Retail Center acknowledged the negative impact of increased energy consumption on sales for local consumers but mentioned that businesses located in tourist areas manage to compensate for the decrease in income with the consumption of foreign tourists.
The cost of electricity represents the second most significant expense, after payroll, accounting for approximately 30% of the total expenses. The executive vice president of the Association of Industrialists of Puerto Rico found the consumption data shared by Luma Energy contradictory to the association’s results. The vice president of Industriales reported a decrease in the sector’s average consumption, which can be attributed to many companies using cogeneration and alternative energy sources.
Many industrialists are actively seeking alternatives to reduce costs and have a more reliable energy supply. Despite the presence of Luma Energy and the anticipated improvements in the system, a reduction in costs is not expected, according to Yandia Perez, executive vice president of the Association of Industrialists of Puerto Rico.
In conclusion, the increase in electricity consumption in Puerto Rico is impacting various sectors and economic activities on the island. The surge in consumption, coupled with high energy costs, has raised concerns about the sustainability and affordability of electricity for businesses and individuals.